Will Bitcoin be banned?

Many rich people have been talking about Bitcoin primarily and looking into blockchain in general, and they are buying Bitcoin as well. Just because the rich are buying doesn't mean it can't be banned. The wealthy and many corporations are accepting Bitcoin as well, as even some regulators. That is not insurance to say that Bitcoin can't be restricted by governments worldwide.

All the newcomers, including the retail investor, buy Bitcoin to speculate on the price and nothing more. They are not buying because they believe in the technology or want to use it to purchase goods and services. Users could not use it either way because users must pay higher fees on the Bitcoin network. Because of that issue, people have no choice but to use Bitocin to speculate on the price and future prices.

New investors buying Bitcoin to speculate doesn't help Bitcoin be ready for a government ban. If nothing else, it makes it easy to have a very successful ban if the government decides to do it. Bitcoin as a speculation asset will be straightforward to ban because governments will only need to attack the entry and exit points. You will have an effective ban and shock the market very effectively.

If you put regulations to ban Bitcoin, you would start with exchanges which are the houses where speculators put their money to speculate, and as such, it is a single point of failure. And those speculating will sell the asset at the first sign of trouble, no questions asked. Once exchanges are taken out, the miners will fall because they need to exchange into fiat to pay for electricity and other operating costs. Many miners will fall off the network in a ban scenario.

The only people left to sustain Bitcoin will be those willing to use it as a payment method regardless of regulations. That community is the peer-to-peer crew, but with the current store of value narrative, that community doesn't exist within the BTC community but only within the Bitcoin Cash community. Those who promote the store of value narrative will be the first to sell Bitcoin Core BTC in the case of a possible government ban, and the peer-to-peer community has been moved effectively to the Bitcoin Cash name.

The government doesn't need to ban Bitcoin outright. It just needs to regulate the exchanges, and the whole house of cards will come crashing down. The proper usage of Bitcoin BCH is to be a peer-to-peer currency first, and as such, it will create the best programmable money, and the result will be a store of value. Unlike Ethereum, Bitcoin BCH will be the real programmable money because fees will continue to be cheap even when usage comes to the network in the future.

Peer-to-peer is what will save the Bitcoin BCH project in the future once government realizes that decentralized money is a real threat to their money printing machine. People will think that store of value is what they need, but once the time to prepare is over and the time to perform is here, that's when that lie will be seen in plain sight. Only the peer-to-peer narrative will survive in the end once hyperinflation is a reality in all fiat currencies worldwide.

The hyperinflation scenario is coming closer and closer to a country near you if it is not already in your country. The US may print yet another stimulus check and probably even more bills in the future, which will help people buy essentials, but it will also increase inflation because that check is just money printing. Bitcoin was born to hedge against inflation because it is a currency that governments can't print and continue printing, but Bitcoin is Bitcoin Cash BCH.

Some countries will ban Bitcoin in the future once hyperinflation is a thing of the past because governments will be worried that money is leaving their borders if money printing goes rogue. Regulations will try to stop people from obtaining Bitcoin to escape a collapsing economy. If not a ban, it will be a hefty tax when exchanging the collapsing fiat into Bitcoin. Argentina imposed a significant tax on the exchange of pesos for dollars. If I am not wrong, governments could impose a 35% tax hike on Bitcoin and any other cryptocurrency asset using exchange agencies to collect that tax, just like Argentina did with the peso and dollar exchange.

Government agencies could try a Bitcoin ban on bank accounts and mining farm operations. Still, individuals could continue to accept it as payments or acquire it using decentralized exchanges. Mining could continue at a retail level which will be believers running miners at houses. A complete ban will be if the government declares it illegal even for individuals and with prison sentences, which could ban the usage of Bitcoin, but it will also mean the end of other rights.

A ban or heavy regulation approach could be possible at the level of the exchange houses. It will only mean that it will be harder to get it or involve a heavy tax, which could decrease the price, but it will recover after a while. Perhaps Bitcoin won't be banned by any third party. Maybe Bitcoin is that kind of technology that can't be killed by third parties but by itself only.

High transaction costs could kill Bitcoin, and that will be something provoked not by third parties but by the community itself. In my case, I have some Ethereum tokens that I can't ever exchange because their value is not enough for the transaction fee, and I have some ETH that, at this point, is burning money because I can't use it either. That benefits those with large amounts because small fish like me can't use their money.